But the project has been hindered by litigation involving the vacant site, where the city has been trying to foster development since the 1970s, officials said.

The city will receive $5.25 million from the settlement with current owner iStar and former lead developer Philip Pilevsky, city records state. Pilevsky also must reopen a movie theater near the site, which is located between Long Beach Boulevard and Riverside Boulevard, records state.

"This project is one that has been talked about not just for years but for decades," said Jack Schnirman, city manager.

The city council's approval sets the stage for a pivotal Zoning Board of Appeals meeting Thursday night at city hall at 7 p.m. Developer iStar is asking the board for height and density variances for its project.

The recent history of the Superblock traces back to Long Beach's 2006 decision to transfer the property to lead developer Philip Pilevsky, who wanted to build two towers on the land. Shore Road Development Partners, led by Pilevsky, took a mortgage from Fremont Investment and Loan, which was later assigned to iStar.